If that policy wins him work I can onkly think that it is because of 1 or 2 things.
1. He is misleading them in some way and hiding the material prices untill it is too late for them to change their mind cos if I was the customer the first thing I would ask is "what is the extra cost"
2. He is using clever and subtle sales psychology to build a relationship with them by having a reason to continue dialogue beyond the initial approach. I have used this technique very successfully for years. It goes sort of like this - you give him an initial indication of price but say can I just call you back later on to confirm everything properly for you. He usually says yes. (In my world that call back is usualy a couple of hours later when he has had chance to phone up my competitors to check on their prices). When I call him back after the initial how are you etc etc questions I ask what he thought of the price. He will either sayit was ok or not. If not I ask what sort of prices he has received elsewhere. If he was not satisfied with my price I know that if I want the order I have to do something. If he will tell me my competitors price I can decide if I can match or beat it. If I want to beat it I can say something like well as Isaid I was going to come back and confirm things and I have good news as I got it slightly wron earlier and the actual price is (a bit cheaper than my competition). Bear in mind most private customers will give you the information you want. However if he is a bit more shrewd and will not give you the prices but I want the work I have to take a flier. I give him a revised price based on the same excuse i.e. I ask for the order and if he is still not satisifed I will be much more blunt and simply ask what sort of price he had in mind. This is the next stage where I will give myself some time to consider whether I beleive him or not and say I will need to seek outhorisation. Again most private customers will give you this time in the hope of saving a few pennies. At this point I have a number of options. If I beleive his price I will go back after a while and let him know my decision. It will either be yes I can or no I cannot do better on my price and that will be the end of it. Sometimes If I don't beleive him I will ask for a copy of my comeptitors quote as evidence to get my "boss's" authority to reduce my price. On every occasions when I go back I have the opportunity to offer him reasons why he should use me at the higher price and actually reducing the price is the last thing on the agenda. I have used thiese techniques in various guises hundreds of times over the years and where I creat multiple opportuinities to discuss the situation with the customer I have rarely lost an order. It also allows me to analyse what my competitors are doing and I have often been able to convince them that it is not always about price and find a reason for them to use me at a higher price. It sounds a bit shady I know but sales is all about orders at te right price and if you don't talk to the prospect you have no chance of selling to him.
It does not work on people who are trained in either sales or purchasing techniques generally e.g. contract customers so the tactic with them has to be different.
1. He is misleading them in some way and hiding the material prices untill it is too late for them to change their mind cos if I was the customer the first thing I would ask is "what is the extra cost"
2. He is using clever and subtle sales psychology to build a relationship with them by having a reason to continue dialogue beyond the initial approach. I have used this technique very successfully for years. It goes sort of like this - you give him an initial indication of price but say can I just call you back later on to confirm everything properly for you. He usually says yes. (In my world that call back is usualy a couple of hours later when he has had chance to phone up my competitors to check on their prices). When I call him back after the initial how are you etc etc questions I ask what he thought of the price. He will either sayit was ok or not. If not I ask what sort of prices he has received elsewhere. If he was not satisfied with my price I know that if I want the order I have to do something. If he will tell me my competitors price I can decide if I can match or beat it. If I want to beat it I can say something like well as Isaid I was going to come back and confirm things and I have good news as I got it slightly wron earlier and the actual price is (a bit cheaper than my competition). Bear in mind most private customers will give you the information you want. However if he is a bit more shrewd and will not give you the prices but I want the work I have to take a flier. I give him a revised price based on the same excuse i.e. I ask for the order and if he is still not satisifed I will be much more blunt and simply ask what sort of price he had in mind. This is the next stage where I will give myself some time to consider whether I beleive him or not and say I will need to seek outhorisation. Again most private customers will give you this time in the hope of saving a few pennies. At this point I have a number of options. If I beleive his price I will go back after a while and let him know my decision. It will either be yes I can or no I cannot do better on my price and that will be the end of it. Sometimes If I don't beleive him I will ask for a copy of my comeptitors quote as evidence to get my "boss's" authority to reduce my price. On every occasions when I go back I have the opportunity to offer him reasons why he should use me at the higher price and actually reducing the price is the last thing on the agenda. I have used thiese techniques in various guises hundreds of times over the years and where I creat multiple opportuinities to discuss the situation with the customer I have rarely lost an order. It also allows me to analyse what my competitors are doing and I have often been able to convince them that it is not always about price and find a reason for them to use me at a higher price. It sounds a bit shady I know but sales is all about orders at te right price and if you don't talk to the prospect you have no chance of selling to him.
It does not work on people who are trained in either sales or purchasing techniques generally e.g. contract customers so the tactic with them has to be different.
